Productivity and employment dynamics: new evidence from Italian regions

TitleProductivity and employment dynamics: new evidence from Italian regions
Publication TypeWorking Paper
Year of Publication2015
AuthorsB. Biagi, MG. Ladu
ISBN Number978 88 8467 926 0

When productivity growth accelerates job destruction and job creation occurs simultaneously. However the results for the whole economy depend on which effect eventually dominates. We investigate what occurs in Italy during the time span 1977-2003, when some waves of labor market reforms have been introduced towards more flexibility. We also investigate if there are any systematic regional differences in the employment/productivity dynamics and whether these dynamics experience any sort of spatial externalities. Findings suggest that overall in Italy job destruction effect prevails and that the labor market reforms have a negative impact on employment.

Citation Key6496
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